Recent data from the Federation Accounts Allocation Committee (FAAC) has revealed significant increases in monthly allocations to several states across Nigeria. According to reports, 12 out of the 36 states saw their allocations rise by 40% or more over the past year, contributing to a total FAAC allocation of N4.5 trillion.
States like Abia, Benue, Ekiti, Katsina, Kwara, Lagos, Ogun, Osun, Plateau, and Taraba experienced boosts exceeding 50%, while others such as Adamawa, Anambra, Borno, Cross Rivers, Ebonyi, Enugu, Kano, Kebbi, Nasarawa, Niger, Oyo, and Sokoto received increases surpassing 40%.
The FAAC, responsible for distributing revenues generated into the Federation Accounts, allocates funds derived mainly from oil exports, taxes, and other statutory incomes among the federal, state, and local governments.
Under the current revenue-sharing formula, the Federal Government receives 52.68%, states receive 26.72%, and local governments get 20.60% of the revenue. This allocation is crucial for state and local governments to meet their financial obligations and foster development.
The latest figures also reflect changes in allocations under the current administration compared to the previous one. Notably, Lagos State saw a 59.6% increase in its FAAC allocation, rising to N253.92 billion under the current leadership, while Kano State recorded a 45.16% increase to N152.34 billion.
Despite these increases, some states experienced declines or smaller increments, highlighting variations in economic dynamics and resource management across different regions of Nigeria.
The FAAC’s efforts aim to ensure equitable distribution of national resources and support sustainable development initiatives at all levels of government.
